Shares of this micro-cap metal stock, involved in manufacturing and trading fabricated products, hit the upper circuit on Wednesday after securing a 25-year Power Purchase Agreement (PPA) with Maharashtra State Electricity Distribution Co. Ltd. The agreement covers 124 MW(AC) of solar photovoltaic power stations under the PM-KUSUM Scheme.
Price Movement
In Wednesday’s trading session, Tembo Global Industries Ltd‘s share price hit the 2 percent upper circuit at Rs.489.80 per share, rising from its previous close of Rs.480.20 each. Over the past five year period, the stock has delivered returns exceeding 650 percent.
What Happened
Tembo Global Industries Ltd has secured a 25-year Power Purchase Agreement (PPA) from the Maharashtra State Electricity Distribution Co. Ltd. for solar photovoltaic power generating stations with a total capacity of 124 MW (AC).
This contract is part of the Mukhyamantri Saur Krushi Vahini Yojana 2.0, aimed at feeder-level solarization under the PM-KUSUM initiative.
The execution of the contract is expected to commence after signing and is slated for completion within 18 months. The order, awarded by a domestic entity, has a total value of Rs.595 crores.
Order Book
Tembo Global Industries Ltd has a robust order book of Rs. 800 crores as of Q1 FY25, which includes L1 orders. The order book comprises Rs. 400 crores, reflecting the company’s venture into Engineering, Procurement, and Construction (EPC) as a means of forward integration into engineering products.
Additionally, the order bidding pipeline, which encompasses EPC projects, totals Rs. 1,200 crores.
Manufacturing Capacity
Tembo Global Industries operates with a 15,000 MTPA manufacturing capacity, benefiting from forward and backward integration for cost savings. The company is undertaking ongoing capital expenditure to boost capacity sixfold, targeting 1,05,000 MTPA by FY25.
Recent Developments
Tembo Global Industries Ltd has launched two new divisions: Tembo Global Infra Ltd and Tembo Defense Products Ltd. Tembo Global Infra focuses on enhancing project execution through innovative solutions and experienced management. Meanwhile, Tembo Defense Products aligns with India’s “Make in India” initiative, aiming to bolster domestic defence manufacturing and self-reliance.
Global Presence
The company has a global presence with exports to the USA and the Middle East, supported by a strong customer base that includes numerous prominent domestic and international clients across over 27 countries.
Financial Overview
In its latest financial update, the company reported remarkable net sales of Rs.128.41 crore for Q1 FY25, reflecting a 61 percent increase from Rs.79.98 crore in Q1 FY24. Moreover, net profits surged exceptionally 220 percent to Rs.5.37 crore in Q1 FY25, compared to Rs.1.68 crore in Q1 FY24.
Company Profile
Tembo Global Industries Ltd, headquartered in Mumbai, specialises in manufacturing and trading metal products for various applications, including pipe support systems and HVAC solutions.
Written by – Siddesh S Raskar
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